Why Should I Get a Small Business Loan? 5 Times When It Makes Sense

How can a small business loan help your business?  There are many times it can, but you should only pursue one under the right circumstances.  Plush Funding is here to help you obtain small business funding in a fast and secure way.  See below for more information.


“Why should I get a small business loan?”  That’s a question almost every small business owner asks at least once or twice as he or she faces growth management questions and other challenges.  The truth of the matter is that for many businesses, a small business loan is something that can bring them to the next level, put them over the top… pick your cliché, but the reality is that capital can and often does make the difference between success and failure.  However, a small business loan should be obtained at the right time and for the right reasons.


Generally speaking, if your business is and has been losing money to the point where you’re desperate for cash, that may not be the time to pursue a small business loan depending on the specifics of the situation.  Most of the time, a small business loan is obtained for positive reasons.  Plush Funding has helped thousands of small business obtain funding for over a decade, and we advise our clients and potential clients in this regard every day.  Below you’ll find five instances that show how a small business loan can help a business.


1.      To Acquire Property

If your operation is one where you started small in terms of space, then you’re like most people who have been through this experience.  If you find yourself constantly bumping into your team members and see that they are also struggling for space, then it may be time to purchase or lease a larger property.  First of all, congratulations!  This means that your business is growing and thriving.  Secondly, a larger space can make for a more productive operation if people have the room to work and do what they’re supposed to do.  However, new leases or commercial real estate purchases can be expensive, and a small business loan may be the key to you taking this step.


2.      To Add Equipment

Almost regardless of what you do, you’re going to need equipment to fulfill your business’ mission.  If you work in the online consulting world, you’re going to need computers for your employees.  If you own a restaurant, you’re going to need ovens, dishwashers and other pieces of equipment.  Name an industry, and we’ll tell you about some of the equipment you need.  As you likely know already, equipment can also come with a heavy expense, which means that financing may be the only way to get your hands on what you need.  In these cases, equipment financing may be a particular type of financing that works best for you.


3.      To Augment Your Inventory

If you’re in a products-based business, you obviously need inventory to satisfy your customers.  However, you’re still in the service industry as well, as your customers won’t be happy if they have to wait for what they feel is an unreasonable amount of time to obtain their purchases.  The best way to assure that doesn’t happen is to have enough inventory on-hand to satisfy their needs and your projected sales.  That’s often easier said than done, however, as you’ll need to invest capital to obtain more inventory.  A small business loan can make a huge difference in this regard, provided you work with the right financing partner to get this done.


4.      To Acquire Talent

We all work in a competitive employment market these days.  Getting the right people to help you move your business forward is no small task.  Often times, having more talented people in the right roles can be the difference between your business skyrocketing upward or stagnating and slowly dying off.  Business is about people, regardless of the specifics of that business.  If you find you need to add to your sales team, or your customer support team or even your management team, it could require an infusion of capital in order to pay these people what they need to be paid.  If you make the right decision, this could be the best investment in your small business you ever make.


5.      To Step Up Your Marketing

It may sound trite to say, but if people don’t know about your business, no one is going to patronize your business.  You need to invest heavily in marketing in order to have potential clients and customers reach out to you.  Once again, this is true regardless of your specific industry.  You may need billboards, pamphlets, business cards, a booth for trade shows or an ongoing online marketing campaign and Web site.  Regardless of your needs, they all cost money, and marketing is about as critical a component of any small business as any that exists.  This is why it’s also a wise investment if those investment dollars are channeled in the right direction for your market.

Overall, the question of how a small business loan can help your business is one that offers many answers.  While the situations above are good examples of when this step could be hugely beneficial, this is not an exhaustive list.  There are many other situations where small business loans make sense.  Your first step is to find out if you qualify, and if so for what.  Fill out our form on this page, and we’ll let you know quickly where you stand.

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